Pinterest valued at $5 billion

DouglasMacMillan

Pinterest Inc. still makes little revenue, yet the scrapbooking site’s value is soaring in the eyes of venture capitalists.

Pinterest

The company said Thursday it raised a $200 million investment that values it at $5 billion, making Pinterest one of the most valuable venture-capital backed startups in the world.

Investors are still willing to pay lofty premiums for tech startups with high potential for growth, even amid a stock-market decline that has sliced the value of several public tech companies. Last month, home-rental site Airbnb Inc. raised capital at a $10 billion valuation.

Pinterest’s value has risen 32% since seven months ago, when the company raised $225 million at a price tag of $3.8 billon.

Altogether, the four-year-old company has received $764 million in funding from a diverse group of investors including venture-capital firms Bessemer Venture Partners and Andreessen Horowitz; a hedge fund, Valiant Capital Partners; and a Japanese e-commerce firm, Rakuten Inc.
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